Location: Crawford County, PA | Metro: Erie, PA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $248,008 | 0.49% | F |
| 3BR | $1,510 | $317,579 | 0.48% | F |
| 4BR | $1,740 | $408,515 | 0.43% | F |
| 5BR | $2,018 | $412,460 | 0.49% | F |
U.S. Census Bureau data (2024)
A landlord considering ZIP 16441 (Waterford, PA) for Section 8 investments must follow a structured decision-making process based on the following criteria:
1. Debt Service Coverage: The Fair Market Rent (FMR) for a single-bedroom unit in ZIP 16441 for fiscal year 2024 is $1080. To determine if this clears the debt service on a property valued at $303,934, you need to calculate the expected monthly income against the monthly mortgage payment and other expenses. Assuming a typical mortgage rate and term, the monthly payment on a $303,934 property would be approximately $1,200-$1,400, including principal, interest, taxes, and insurance. Given that the FMR is $1080, this does not clear the debt service unless the landlord has additional income sources or can secure a lower-cost financing option.
It Depends: Whether the landlord should proceed depends on their ability to cover the remaining $120-$320 per month without relying solely on the FMR.
2. Market Rent vs. FMR: The market rent for Waterford, PA, according to Census ACS data, is $799 for a single-bedroom unit. This figure is below the FMR of $1080. A market rent below the FMR suggests that Section 8 could provide higher rental income compared to what the market currently offers.
Yes: If the landlord's goal is to receive higher rental income than the local market, Section 8 could be advantageous given the FMR exceeds the market rent.
3. Demand Analysis: In ZIP 16441, 15.4% of the population are renters. However, the days on the market (DOM) data is not available, which makes it difficult to assess the speed at which properties are rented out. Despite this, the percentage of renters indicates a modest demand for rental housing.
It Depends: With 15.4% of the population renting, there is some demand, but the lack of DOM data means we cannot fully evaluate how quickly units are filled. Landlords should consider the stability of the rental market and the potential for long-term tenancy when making their decision.
Decision Tree Summary:
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.